Source: India Today

Income Tax Department to investigate the tax evasion case of industrialist Piyush Jain

The Kanpur-based perfume businessman, Piyush Jain has once again become a subject of discussion. The Income Tax Department of India on Friday, May 27 has decided to investigate into the matter of tax evasion by the industrialist. The bureaucrats noted the testimony of Mr. Jain inside the prison on Friday. The officers interrogated him for more than 5 hours.

The officers of the DGGI formally submitted their report to the IT Department last week after which the IT Dept of Kanpur Division has started a probe into the matter.

Businessman Piyush Jain was arrested after recovering surplus amount of cash, gold and sandalwood
Source: India Today

In an interview Mr. Ambreesh Tandon, the special public prosecutor said that A letter was sent to the IT Dept to start a probe in Piyush Jain’s case by the Ahmedabad division of DGGI. After receiving the letter the IT Department lodged a plea in the court to ask permission for interrogating Mr. Jain inside the prison. The Income Tax officers received permission from the court to question Mr. Jain on Friday.

According to the reports, the officers entered the prison around 11 am and came out around 5 am after interrogating the industrialist.

Background of the case

Previously, in December 2021 the officers of DGGI had retrieved Rs 194.45 crore in cash, 23 kg of gold, and 600 kg of sandalwood from Jain’s perfume industry. This wealth owned by him was unaccounted. Under section 69 of CGST, the Perfume Businessman was taken into custody after this raid. It was after this incident that Piyush Jain came into the highlight.

Rs 194.45 crore cash, 23 kg gold and 600 kg sandalwood recovered from Businessman Piyush Jain
Source: India Today

The officials of DGGI and Local Central GST jointly raided the industry and home of Mr. Jain where they regained a surplus amount of cash and gold. The DGGI had put a tax of Rs 52 crore on the total cash impounded from the industrialist. However, the industrialist had asked the DGGI to deduct the tax raised from the total capital confiscated and return him the rest.

Present Scenario

The Income Tax department will now confiscate or claim the remaining capital after the deduction of tax liability issued by the Directorate General of GST Intelligence (DGGI) under Income tax’s section 132B.

The cash collected at Piyush Jain's house
Source: NDTV

According to the report of ANI, the wealth which was regained from Mr. Jain is retained inside the State Bank of India (SBI) at present. The Kanpur-based IT Dept will now be issuing a warrant against Piyush Jain and will investigate his previous year’s tax returns by rechecking the income tax report submitted by the industrialist in 2021.